Chapter Two SCIENTIFIC METHODS IN BUSINESS
Sources of Knowledge Empiricists attempt to describe, explain, and make predictions through observation Rationalists believe all knowledge can be deduced from known laws or basic truths of nature Authorities serve as important sources of knowledge, but should be judged on integrity and willingness to present a balanced case
The Essential Tenets of Science Direct observation of phenomena Clearly defined variables, methods, and procedures Empirically testable hypotheses Ability to rule out rival hypotheses Statistical justification of conclusions Self-correcting process
Ways to Communicate Exposition Argument descriptive statements that merely state and do not give reason Argument allows us to explain, interpret, defend, challenge, and explore meaning
Important Arguments in Research Deduction is a form of inference that purports to be conclusive Induction draws conclusions from one or more particular facts
The Building Blocks of Theory Concepts Constructs Definitions: operational definitions Variables: concepts or constructs used in the model
The Building Blocks of Theory Propositions and Hypotheses Proposition: statement about a concept or relation that may be true or false Hypothesis: proposition formulated for empirical testing Theories: explanations Models: presentations
Understanding Concepts A concept is a bundle of meanings or characteristics associated with certain events, objects, conditions, situations, and behaviors Concepts have been developed over time through shared usage The success of research hinges on: how clearly we conceptualize how well others understand the concepts we use
What is a Construct? A construct is an image or idea specifically invented for a given research and/or theory-building purpose.
Types of Variables Discrete vs. Continuous Dependent vs. Independent Dichotomous variables are a special case of discrete variables Dependent vs. Independent Moderating, Extraneous and Intervening Moderating: observable, second independent variable Extraneous: other miscellaneous variables that affect DV Intervening: unobservable variable that affects DV
The Role of the Hypothesis Guides the direction of the study Identifies facts that are relevant Suggests which form of research design is appropriate Provides a framework for organizing the conclusions that result
Types of the Hypothesis Descriptive Relational Correlational Explanatory (causal)
What is a Good Hypothesis? A good hypothesis should fulfill three conditions: Must be adequate for its purpose Must be testable Must be better than its rivals
The Value of a Theory Narrows the range of facts we need to study Suggests which research approaches will yield the greatest meaning Suggests a data classification system Summarizes what is known about an object of study Predicts further facts that should be found